The wide world of sports is a growing sector for accounting students considering a future career path. The intersection of sports and accounting offers accounting professionals a unique and dynamic environment. This article delves into the diverse opportunities within accounting careers in the sports industry, highlighting the roles, responsibilities, requisite skills and profiles of industry professionals such as Kip Elliot from the Minnesota Twins and Beth West from James Moore & Co.
The sports industry's projected future expansion, over
Accountants' roles and responsibilities in the sports industry are much like any other, with opportunities internally at sports-related businesses and externally through consulting and compliance services offered by public accounting and consulting firms. Whether through working directly for a sports enterprise or indirectly as a consultant with an accounting firm, accountants play a critical role in the financial management of sports enterprises by analyzing revenue streams, expenses and investment opportunities to optimize financial outcomes for teams, sporting events, or athletes. They utilize financial analysis techniques to assess the performance and profitability of
A unique aspect of sports businesses is how teams exchange talent (players) on transfer markets. The opposite side involves contract management and sports agency. Negotiating contracts and managing the financial aspects of player agreements requires accountants who work closely with legal teams and other sports management professionals to structure contracts and calculate salaries, bonuses and incentives while
Tax planning and compliance are also essential functions for sports entities. These businesses often operate across the country and are complex, with service, entertainment and retail operations. Accountants develop critical tax planning strategies, prepare tax returns, and ensure compliance with tax laws to manage risks and maximize profits. Accountants are also pivotal in preparing budgets and forecasts for efficient resource allocation. Furthermore, the seasonal nature of the sports industry only increases the
Important skills
Accountants entering the sports world need many of the skills required for working with other industries, including a strong understanding of accounting principles and the ability to perform financial analyses and forecasting. Thus, accountants working outside the sports world can feel confident that the skills they learn in school or other accounting jobs will help prepare them for a sports accountant career. They should also be able to interpret financial and operational data, identify trends and interpret results.
As with all areas of accounting, attention to detail is a must. Details are essential when dealing with contracts and compliance matters where legal teams are also engaged. Moreover, effective communication is essential when presenting financial information, negotiating contracts or working with stakeholders. Accountants must be able to connect the dots; concisely associate financial results, economic conditions, and business strategy; and articulate to individuals with a limited understanding of accounting and finance to help them make informed decisions.
Although most accounting skills are transferable to the sports industry, understanding sports economics would be helpful, so electing educational options targeted at sports could help students adapt to the industry more quickly. Some universities have sports management degrees or minors, and others offer elective courses in sports economics that teach students the economics behind professional sports leagues, player pay, sports financing and more. Adding some sports-specific knowledge to the accounting degree would be helpful to aspiring sports accountants.
Minnesota Twins
Kip Elliott serves as the executive vice president for the Minnesota Twins, a Major League Baseball team based in Minneapolis. Elliott graduated with a degree in accounting in 1989 and became a CPA. He started his career with the public accounting firm of Coopers & Lybrand and worked there from 1989-92. After joining the Twins in 1992, he became controller in 1995, CFO in 1999, senior vice president in 2006, executive vice president in 2012, and was named to his current position in 2016. Elliott is responsible for finance, procurement, technology, ballpark operations, financial reporting and financial relationships with
Elliott credits his accounting education, a CPA background and his time in public accounting for the skills necessary to become a CFO at a professional sports franchise. He stated that it's essential to understand core accounting and how it affects business. He said the Twins' business operations are divided into departments by function (e.g., ticket sales, ballpark operations, finance, etc.). The activities of these departments vary, but none of them, Elliott said, are more complex than the engagements he encountered in public accounting. He said the diversity of situations he got to work on as a public accountant is paramount to his ability to problem-solve and make decisions.
Elliott highlighted the value of a background in accounting by stating that, of the 30-plus CFOs he is in contact with, over 80% are or were CPAs. He recommends that accounting students should start in public accounting. "Working for a public accounting firm teaches you so much, and you often work with clients who would be happy to hire you," he stated. That, in short, is how he got his position with the Twins and made his transition into sports.
What does he enjoy most about his career in the sports business? "The cliché answer (and sincere answer) is the people," Elliott responded. "I've had the good fortune to work with a variety of tremendous individuals who share a passion for the business of sports, in particular, a passion for Major League Baseball. The many personal relationships that I've been fortunate enough to have built are what makes the job fulfilling. At the end of the day, it's a pretty cool product to be a part of. All of us at the Twins are lucky to work in an industry that provides entertainment and social engagement for a myriad of people to experience. The variety of each day continues to make it fun to go to work. Truly, no two days are the same. ... There aren't many places better to go to for a job than a baseball park."
Sports accountant
Beth West has enjoyed a diverse career as a sports accountant. She has worked in internal accounting operations for a university athletic department and is now a trusted advisor to athletic departments nationwide. West enjoys "combining a personal passion for athletics with accounting and business concepts to result in gratifying work. I enjoy that an educational background in accounting can lead to so many varying career paths, including being able to help organizations in the business arena of sports."
Like Kip Elliot, she started her career in public accounting. West graduated with a master's degree in accounting in 2011 after a standout Division I women's volleyball career. After graduation, she worked in the assurance practice with the Big Four firm Ernst & Young. When an opportunity opened for an assistant athletic director for business at her alma mater, West merged her passions for accounting and sports. She eventually rose to senior associate athletic director for business, overseeing the university athletic department's business and financial operations, including financial management and budgeting, financial reporting, various accounting and human resource processes, and more. West supported the university's athletic endeavors while ensuring long-term financial sustainability.
Her career has gone full circle: She now works as a senior accountant for James Moore & Co., a CPA firm in Gainesville, Florida, that consults with collegiate athletic departments and helps them with their financial operations and compliance. She specializes in helping collegiate athletic departments with agreed-upon procedures over their NCAA financial reports. West leverages her previous experience as the senior associate athletic director for business.
Regardless of the position, she said, flexibility, purpose and communication are the three most important skills for working in a sports accounting role. "You may wear a variety of hats within a sports organization, and it is important to remain flexible with the ability to adapt and learn," she said. West has been able to adapt, learn and leverage her experiences into a great career in both accounting and sports. She recommends that individuals interested in finding job opportunities in the sports world browse
Accounting careers in sports offer a unique opportunity for accountants to blend financial management and passion for athletics, with professionals like Kip Elliot and Beth West exemplifying the diverse opportunities within this field. As the sports industry continues to evolve and grow, the demand for skilled accounting professionals remains high. Aspiring accountants can carve out rewarding careers in this exciting and dynamic sector with the right mix of skills, expertise and dedication.
